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AI Startup Mercor Cuts Pay After $350M Funding

11/13/2025

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Summary

Story summary

Mercor Contractors, a San Francisco-based AI startup, cut pay and terminated the Musen project after securing $350 million in funding and a $10 billion valuation.
The pay cut lowered wages from $21 to $16, with some states below minimum wage.
Despite the pay cut, some contractors chose to continue under new terms.
Many contractors expressed shock and disappointment at the abrupt changes and felt disrespected after assurances of project continuity.

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Story summary

Mercor Contractors, a San Francisco-based AI startup, cut pay and terminated the Musen project after securing $350 million in funding and a $10 billion valuation.
The pay cut lowered wages from $21 to $16, with some states below minimum wage.
Despite the pay cut, some contractors chose to continue under new terms.
Many contractors expressed shock and disappointment at the abrupt changes and felt disrespected after assurances of project continuity.